SB2088.DOC

THE SENATE	S.B. NO.	2088
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO funding of early intervention services.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Hawaii's families require programs that provide early intervention services for infants and toddlers with developmental delays and proactively address biological and environmental risk factors that cause developmental limitations. Such factors include, among other things, low birth weight; primary caregiver incarceration or substance abuse; the physical, developmental, emotional, or psychiatric disability of a primary caregiver or family member; and child abuse and neglect.

The legislature further finds that inadequate funding has continued to prevent the consistent provision of these required services. Without supplemental funds from a dedicated revenue source, the situation will surely worsen.

The purpose of this Act is to provide a supplemental dedicated source of funding for community-based, family-centered, early intervention services by means of an increase in the liquor tax.

SECTION 2. Section 244D-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Every person who sells or uses any liquor in the State not taxable under this chapter, in respect of the transaction by which the person or the person's vendor acquired the liquor, shall pay a gallonage tax which is hereby imposed at the following rates for the various liquor categories defined in section 244D-1:

For the period July 1, 1997, to June 30, 1998, the tax rate shall be:

(1) $5.92 per wine gallon on distilled spirits;

(2) $2.09 per wine gallon on sparkling wine;

(3) $1.36 per wine gallon on still wine;

(4) $0.84 per wine gallon on cooler beverages;

(5) $0.92 per wine gallon on beer other than draft beer;

(6) $0.53 per wine gallon on draft beer;

On July 1, 1998, and thereafter, the tax rate shall be:

(1) $5.98 per wine gallon on distilled spirits;

(2) $2.12 per wine gallon on sparkling wine;

(3) $1.38 per wine gallon on still wine;

(4) $0.85 per wine gallon on cooler beverages;

(5) $0.93 per wine gallon on beer other than draft beer;

(6) $0.54 per wine gallon on draft beer;

On July 1, 2010, and thereafter, the tax rate shall be:

(1) $6.03 per wine gallon on distilled spirits;

(2) $2.17 per wine gallon on sparkling wine;

(3) $1.43 per wine gallon on still wine;

(4) $0.90 per wine gallon on cooler beverages;

(5) $0.98 per wine gallon on beer other than draft beer;

(6) $0.59 per wine gallon on draft beer;

and at a proportionate rate for any other quantity so sold or used."

SECTION 3. Section 244D-17, Hawaii Revised Statutes, is amended to read as follows:

"[[]§244D-17[]] Disposition of revenues. All moneys collected pursuant to this chapter shall be paid into the state treasury as state realizations, to be kept and accounted for as provided by law[.]; provided that beginning July 1, 2010, of the moneys collected under section 244D-4, 5 cents of each per gallon tax shall be deposited to the credit of the early intervention special fund established pursuant to section 321‑355, for the purpose and use of that fund as described in section 321-357."

SECTION 4. Section 321-355, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The fund shall consist of grants and income earned by the special fund[.] and deposits from revenues of the liquor tax as provided under section 244D-17. Notwithstanding section 29‑24, all program income consisting of federal reimbursement funds received by the State for early intervention funded by legislative appropriations under this part shall be deposited into the special fund; provided that no state appropriations shall be deposited into the special fund."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________